Until recently, there were rumors that Samsung is preparing together with TSMC pro Apple supply of next-gen A8 processors. However, now comes the news that TSMC is able to produce many more processors than originally expected, and so Apple decided to increase the number of ordered A8 processors from TSMC at the expense of Samsung, which thus lost a significant part of the order. This, however, put the Samsung factory in Texas in a problematic situation, as they have more parts in stock than orders.
The factory itself, which is located in Austin, Texas, includes around 5500 employees and costs Samsung's budget over one and a half billion US dollars per year, but its utilization was lower than 70 percent as of February/February and it is currently only able to produce processors. According to Samsung representatives, the company plans to invest half a billion dollars less in the factory this year, i.e. one billion USD, because it has been unsuccessful in fulfilling many majority orders over the past year.
*Source: PatentlyApple.com
